The farmer-owned cooperative, First Milk has been putting in place steps to ensure a sustainable long-term future, with the latest phase of this work a reshaping of the co-op's capital structure. Chairman Clive Sharpe said yesterday : "First Milk has made significant progress over the last nine months. We have reduced employee numbers, cut overhead costs, addressed quality issues and established a new governance structure. We have also refinanced the business with our existing lenders and disposed of our Glenfield business and our shareholding in Westbury Dairies.
"A final element of our turnaround plan is addressing our capital structure. Hence today we have communicated to members and ex-members our intention to convert farmers' loan capital into equity. In due course we will be confirming the type of equity to be issued; tax consideration for members, former members and how returns on equity might be paid in future."
NFU for England and Wales chief dairy adviser Sian Davies said: "We understand that First Milk has faced a number of challenging decisions over the last few months, but farmers will be concerned if today's announcement results in a negative financial impact on their businesses at what is already a very difficult time for the industry.
"For many former First Milk members who have already had their payments delayed, this will be seen as a backwards step and another obstacle to the release of their historical investment in the business. It is crucial that First Milk keeps talking to its members about its overall strategy and turnaround plan. "
Market round-up
Messrs Craig Wilson Ltd sold 203 store heifers at Ayr on Thursday to a top of £1190 per head and 239.3p per kg to average £792.32 and 203.7p (-4.7p on the fortnight), while 281 store, beef-bred bullocks also peaked at £1190, although the top price per kg was higher at 253.9p, with the final averages levelling at £891.35 and 208.9p (-6.6p). Twenty-seven store, B&W bullocks sold to £850 and 151.8p to average £694.44 and 134.6p (-1.1p).
C&D Auction Marts Ltd sold 6175 prime hoggs in Longtown on Thursday to a top of £120 per head and 287p per kg to average 193.8p (-0.7p on the week).
There were also 3475 cast sheep forward when heavy ewes sold to £150 for a Texel and averaged £85.43 (+38p), while light ewes peaked at £85 for Blackfaces and levelled at £58.91 (+£3.46). Rams sold to £130 and averaged £84.54.
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